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Name Annapoorneshwari .S. U

Financial information is presented from 2002-2006 for accounts receivable, inventory, accounts payable, current assets, liabilities, sales, profits, assets, liabilities, capital employed, and various ratios are calculated

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212 views4 pages

Name Annapoorneshwari .S. U

Financial information is presented from 2002-2006 for accounts receivable, inventory, accounts payable, current assets, liabilities, sales, profits, assets, liabilities, capital employed, and various ratios are calculated

Uploaded by

annapoorneshwari su
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© © All Rights Reserved
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Name ANNAPOORNESHWARI .S.

Question 1

The company has increased its profit from 4190.87196 to 7497.10079354031 approx.
28% and the categories in the cash flow statement has contributed majorly to the
decrease in the 'change in cash' by the company from 2003 to 2006(E) is operating
activity

Trend of the operational activity decreasing, the trend of the investing cash flow
increasing, and the trend of financial cash flow is decreasing.

Reason for operational activity: there is decrease in the cash flow because of the cash
inflow but not paying to the credit assurance to be paid

Reason for investing activity: there is increase of cash flow due to investment in PP&E

Reason for financial activity: There is increase of cash flow because of debt assurance
not been paid

1)self-financing of investments

CFO is more than CFI and CFF , So we can see the positive side they are able to manage
everything with making profit as well

2)Funding of investments
CFO+CFF+partly funded CFO+CFF are positive, hence investments have the negative
trend.

3)Cash position is positive or negative of generation of cash=CFO+CFI+CFF=negative


value so there is negative cash flow

4)free cash flow

CFO-CFI is also negative hence free cash flow is less

Question 2

At December 31 2002 2003 2004 2005 2006E


Accounts Receivable (+) 3,485 4,405 6,821 10,286 14,471
Inventories(+) 3,089 2,795 3,201 3,291 3,847
Accounts Payable (-) 2,034 2,973 4,899 6,660 9,424
Operating working cap 4,540 4,227 5,122 6,917 8,894

Oper working cap 4,540 4,227 5,122 6,917 8,894


Sales 24,652 26,797 29,289 35,088 42,597
Operating working
capital ratio 0.184162 0.157726 0.174893 0.197137 0.208789

At December 31 2002 2003 2004 2005 2006E


DIO 54.34841 46.35616 48.32877 41.42466 39.45205
DSO 50.89203 59.17808 83.83562 105.5342 122.3014
DPO 35.78655 49.31507 73.9726 83.83562 96.65753

Working capital for High due to not paying the debt assurance and loans

Question 3
Liabilities 2002 2003 2004 2005 2006E
Current Liabilities 2,349 3,325 5,423 7,390 10,074
Trade Creditors 5,024 6,091 7,146 8,336 9,563
Bills Payable 2,034 2,973 4,899 6,660 9,424
Short term loans 315 352 525 730 649
long terms loans 3,258 4,400 5,726 7,123 8,480
Total Assets 10,631 13,817 18,295 22,850 28,117
Assets
Current Assets 7,279 8,742 11,839 15,735 20,273
Cash in hand 705 1,542 1,818 2,158 1,955
Inventories 3,089 2,795 3,201 3,291 3,847
Bills payable 3,485 4,405 6,821 10,286 14,471
Fixed/Non-Current
Assets 3,352 5,075 6,456 7,115 7,844
Building 645 645 645 645 645
Land 450 1,750 2,853 2,853 2,853
Plant & machine 2,257 2,680 2,958 3,617 4,347
Total Liabilities 10,631 13,817 18,295 22,850 28,117
10491.1 12871. 15459. 18043.
Capital employed 8282
48 66 54 4

Question 4

For Years
Ending
December 31 2002 2003 2004 2005 2006E
Sales revenve(-) 68 74 81 97 118
COGS(-) 20,461 21,706 23,841 28,597 35,100
sales/ 24,652 26,797 29,289 35,088 42,597
Variable
83 81 81 81 82
margin%

Operating
4,540 4,227 5,122 6,917 8,894
income
sales 24,652 26,797 29,289 35,088 42,597
operating
18 16 17 20 21
margin%

net profit 1,191 1,293 1,279 1,488 1,534


owners equity 5,024 6,091 7,146 8,336 9,563
ROE% 24 21 18 18 16
EATBI 1,828 2,686 2,848 3,382 3,676
(OpeningCE +
8,282 10,491 12,872 15,460 18,043
Closing CE)
ROACE% 11 13 11 11 10

Return on equity (ROE) is a measure of financial performance calculated by dividing net


income by shareholders' equity. So, the trend was increase initially and got decreased
by2006E

Return on capital employed (ROCE) is a financial ratio that can be used to assess a
company's profitability and capital efficiency. We can see the trend in bit increased in
2003 and got decreased by 2006E

Question 5

PROS:

1)The ceres company has experienced impressive growth and increasing revenue in
recent years.

2)It stood competitively positioned in an expanding company.

Cons:

1)Not generating enough money for operating activity

2)the overall increasing trend may attract new players

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